NUMBER 6:

BID + GAMES BUDGETS

1 INTRODUCTION

1 Introduction

BID BUDGET
2

Bid Budget

Fundraising Plan . . . . . . . . . . . . . . . . . . . . . . . . . . 4

GAMES BUDGET
3

Games Budget

10

Non-OCOG Budget . . . . . . . . . . . . . . . . . . . . . . . 12
Athletes Village . . . . . . . . . . . . . . . . . . . . . . . . . 14
Olympic Stadium . . . . . . . . . . . . . . . . . . . . . . . . 14
IBC / MPC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Other Venues . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
OCOG Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
OCOG Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . 17
OCOG Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

 Introduction

1 INTRODUCTION

Our teams top priority is to deliver a responsible

and sustainable Games. Accordingly, Boston
2024s bid and budget are based on a powerful
combination of robust and ongoing private fiscal
support, a strong focus on legacy, demonstrated
ability to capitalize on innovative design, and
thoughtful leveraging of infrastructure investment.
Our fundraising and budget highlights include:
Healthy capitalization from the Northeasts most
powerful brands;
Individual leaders from the business community lining
up behind our bid and pledging financial support that
will continue to bolster the bid into the international
phase;
A bid budget that does not rely on a single tax
dollar and limits Olympics-based public investment
to roadway, transportation and infrastructure
improvements, most of which are already planned and
are needed with or without the Olympics;
Public-private partnerships that will be leveraged in
viable, sustainable and achievable ways;
Innovative industry leadership in sustainable
construction creating groundbreaking opportunities for
housing and sports venues design;
Unparalleled opportunity for urban redevelopment
with 75% of land use either public- or universityowned; and
Strong support from legacy users, including colleges
and universities and the City of Boston, which will
allow this bid to succeed like no other.
Boston 2024s unwavering commitment to fiscal
responsibility has been an integral part of the
planning since the inception. As we deliver the final
chapter of this bid book we are pleased to offer a
responsible, predictable, and achievable fundraising
plan and budget.
This last chapter also allows us to come full circle
and present a bid of which we are incredibly proud
while remembering what motivated us to start
down this road so many months ago. It is fitting to
end this bid book with the way we started with
our Boston 2024 Guiding Principles:

Boston is a global leader in innovation, and in order

to remain a global leader, we must be aspirational.
With a view toward elevating our collective thinking
and actions and as we plan through and beyond
2030, we have decided to explore a bid for the 2024
Olympic and Paralympic Games, and have adopted
the following guiding principles as we embark on
this process:
We will only bid if we are sure that hosting the Olympic
and Paralympic Games will align with and accelerate
our long term planning as a city and state, through and
beyond 2030.
We will only bid if we have support from our city, state,
and federal government; our business community; and
our venue communities.
We will not divert public funds from projects crucial to
our health and competitiveness as a region.
We will do our due diligence in an open, honest, and
transparent manner.
We will prioritize diversity in the people we engage,
the decisions we make, and the work that we do,
including diversity of ethnicity, economic circumstance,
age, gender, race, religion, and sexual orientation.
We will make every decision keeping in mind the
lasting impact it would have on our hometown
treasures, including neighborhoods, open spaces, and
academic institutions.
We will seek every opportunity to engage our youth in
Olympic sports and educate them about Olympism and
Olympic and Paralympic Athletes.
We will work to build a living legacy, through every
discussion we have about the possibility of hosting the
Games, by advancing important ideas and projects that
will enhance the quality of life in the region and create
a powerful global experience for the Olympic and
Paralympic Movement and all of its stakeholders.
We will work in complete cooperation with the USOC
to ensure the promotion and protection of the Olympic
and Paralympic Movement and the worlds Athletes.
We will work to create a national and international
model to support Olympic and Paralympic Athletes,
by seeking ways to advance their education and
professional careers outside of competition.
We will only submit a bid we think we can win.
Thank you for the opportunity.

1 D E C E M B E R 2014 N U M B E R 6: B I D + G A M E S B U D G E T S I N T R OD U CT I O N

 BID BUDGET

BID BUDGET

Fundraising Plan
Describe your fundraising plan, including amounts you
anticipate from private authorities, public philanthropy and
corporate donations.
Vision Boston 2024 Fundraising Strategy:
The people of Boston and Massachusetts are
generous, compassionate, enthusiastic and altruistic.
We are a community committed to coming together
to encourage and support one another in an effort
to foster thriving people and vibrant places. We do
amazing work across all sectors, and our people
donate hundreds of millions of dollars each year
to our world-renowned universities, hospitals and
innovative local organizations that have become
national models of how to combat poverty, educate
children, cure the sick and enrich our lives with art
and culture. We will seamlessly come together to
secure the funding needed to successfully host the
2024 Summer Games.
As a collective philanthropic community, we are
powerful - we respond generously, passionately and
responsibly to ensure the success of our beliefs.
In the aftermath of the Boston Marathon tragedy,
the One Fund raised $60 million in 90 days. The
Boston-based Pan-Mass Challenge (PMC) is the
largest single athletic charity event in the country,
bringing together thousands of impassioned
cyclists, committed volunteers, generous donors and
dedicated corporate sponsors each year. Since 1980,
the PMC has raised more than $455 million for
cancer research and care. 2014 was a banner year
with a record-breaking $41 million raised.

Our philanthropic culture mirrors our culture in the

Northeast: innovative, passionate and tenacious. We
have a number of prospect pipelines to leverage:
Massachusetts is home to 26 Fortune 1,000 companies
Massachusetts has 10 of the 225 largest private
companies with over $50 billion in annual revenue
Massachusetts has 526 corporate and private
foundations. The top 50 foundations have assets
totaling over $9 billion.
In addition to having a well-established and
innovative donor community, one of the most
exciting parts of raising funds for the Boston
Olympic bid is the ability to open up a new
geographic region to Olympic giving. Although we
are a wealthy community, the Northeast has not
historically been a large base of USOC or Team USA
fundraising focus, thus our community does not
suffer from Olympic donor fatigue as other markets
may. To the contrary, we have a fresh market full of
people who are passionate about sport and proud of
their home. As a result, even in our early fundraising
stages over the past few months, individuals,
corporations and foundations from a cross section
of sectors have invested generously in Boston 2024.
We intend to capitalize on this momentum and
strong base of support to diversify our funding
sources and continue to secure leadership level
gifts. We also look forward to collaborating with our
college and university partners in this bid, whose
established fundraising programs have created
endowments that are among the largest in the
country, including Harvard Universitys $32 billion
endowment and MITs $11 billion endowment.

With three of the top 10 largest fundraising events

in the United States coming out of Massachusetts,
we are also a community known for both our strong
philanthropic traditions and our exciting fundraising
innovations. The Boston Foundation, one of the
oldest and largest community foundations in the
nation, will celebrate its 100th anniversary in 2015.
Meanwhile, the Ice Bucket Challenge, which started
as a small campaign in Boston and exploded into
a viral worldwide success, raised over $100 million
from over 3 million donors.

B I D B U D G E T N U M B E R 6: B I D + G A M E S B U D G E T S 1 D E C E M B E R 2014

2 BID BUDGET CONTINUED

Focused Attention on our Best Revenue Streams:

As a 100% privately-funded effort, Boston 2024
Partnership is not accepting public funds for any
stage of the bid process. After careful study, we
believe that we will achieve the fastest private
capitalization by placing the following minimum
target goals on these revenue stream categories.
Major Gifts: $65,000,000
This program will be made up by personal
contributions from high net worth individuals,
corporations, private foundations and labor unions.

DONOR LEVEL

DONORS NEEDED

POTENTIAL REVENUE

$10 MILLION

$10 MILLION

$5 MILLION

$10 MILLION

$2.5 MILLION

$5 MILLION

$1 MILLION

$5 MILLION

$500,000

21

$10.5 MILLION

$250,000

30

$7.5 MILLION

$100,000

50

$5 MILLION

$50,000

100

$5 MILLION

$25,000

200

$5 MILLION

$10,000

200

$2 MILLION

10 DONOR LEVELS

611 DONORS NEEDED

$65 M TOTAL

The Finance Committee and Boston 2024 staff

will work collaboratively with the USOC to raise
funds through:
Events: An aggressive events program will be
developed to target prospects in various industries
Peer to Peer Meetings: Captains will participate
in meetings with peers in their industry to develop
prospects into donors.
Stewardship + Cultivation: A program of weekly
briefings, meetings with Boston 2024 Leadership,
conference calls and other events, will be established
for donors to develop a deeper partnership with
Boston 2024 so that they will have a strong sense of
ownership and responsibility.
Digital + Social Media: $3,000,000
Low-dollar grass roots fundraising will be helpful
towards the overall finance goal, but the purpose
of this category is mainly to build outreach and
awareness. We intend to have a membership
Boston 2024 fan club that will help develop this
grassroots initiative. We expect membership
donations to account for approximately 50% of the
grassroots funding.
Corporate Employee Events: $2,500,000
Companies would encourage donations from their
employees from fun activities in their offices. We
anticipate having 50 Firms/Companies participate
at an average $50,000.

B I D B U D G E T N U M B E R 6: B I D + G A M E S B U D G E T S 1 D E C E M B E R 2014

2 BID BUDGET CONTINUED

Young Professionals: $2,000,000

This program is created with the understanding that
many people who are young professionals in 2014
will be business leaders and high level executives
by the time of the 2024 Olympics. Through a series
of networking events with young professionals and
current executives, a donor base will be developed
with the goal that it will continue to exponentially
grow as current young professionals excel and
advance in their careers. In 2015, we expect 100
Young Professionals to donate $5,000; in 2016, we
expect 100 Young Professionals to donate $5,000
and 50 Young Professionals to donate $10,000.
College and University Outreach: $1,000,000
Each year, metropolitan Bostons 90 colleges and
universities attract more than 360,000 students
from across the country and the world. Our plan
is to maximize this potential and create a student
movement that will support a lower dollar grass
roots program. Low dollar donations that occur
because of miscellaneous events (marathon, walks,
college students, etc.) will bring in significant
funds from overall volume. Over the course of 18
months, we expect approximately 10,000 individual
donations at an average $100 per donation. Boston
2024 will leverage its relationships with many local
Olympians to help market this program - many of
whom attended these institutions.

1 D E C E M B E R 2014 N U M B E R 6: B I D + G A M E S B U D G E T S B I D B U D G E T

Quarterly Events: $800,000

This would be the money raised from approximately
8 events held in the next 12 months, with an
expected net of $100,000 per event.
Merchandise: $700,000
We plan to have limited-edition items for sale or
auction that will generate an anticipated revenue
stream of approximately $700,000 over the course
of approximately 18 months.
Total: $75,000,000
Boston 2024 is pursuing this bid for the 2024
Olympic and Paralympic Games because we
understand this opportunity is about legacy and our
investment in the future. The 2024 Olympic Games
would serve as a defining moment for Boston and
Massachusetts and present a rare opportunity
to shine the spotlight of the world on our story,
ideals and people. We have developed a thoughtful
development and fundraising strategy to provide
ample capitalization for this exciting effort, and feel
that this approach will prove highly successful for
Boston 2024 and the USOC.

 GAMES BUDGET

GAMES BUDGET

Boston 2024 believes that the budget is a critical

component of the planning of the Games. Our team
has harnessed the knowledge of Bostons most
talented and respected leaders in disciplines that
have greatest impact on the budget - construction,
private development, architecture, urban and
transportation planning and public financing. In
addition, we have worked in collaboration with the
USOC, the London 2012 team and other innovators in
sport venue planning and construction to ensure we
understand the true costs of hosting an Olympics.
Throughout the budgeting process, Boston 2024 has
adhered to a number of guiding principles for its
planning and financing approach:
1. Maximize opportunities for legacy value that will
benefit our community leading up to and far beyond
the period of the Games.
2. Be creative and resourceful in utilizing Bostons
vast network of existing assets.
3. Showcase our citys vibrant sports community, rich
tradition and history.
4. Be responsible, conservative and transparent in
our estimates and projections.
We believe the budget developed by Boston 2024
in close collaboration with the USOC and a diverse
team of industry experts is responsibly conservative,
reasonable and feasible.

10

G A M E S B U D G E T N U M B E R 6: B I D + G A M E S B U D G E T S 1 D E C E M B E R 2014

3 GAMES BUDGET CONTINUED

3 GAMES BUDGET CONTINUED

Non-OCOG Budget
Boston 2024s non-OCOG budget is estimated to be
$3.4B, driven by the development of legacy facilities,
both sporting and non-sporting related.
$5.0 B

4.0

$3.4 B

$3.4 B

Dollars ($B - 2016)

OTHER VENUE COSTS

3.0

STADIUM
IBC / MPC

2.0
PUBLIC / PRIVATE
PARTNERSHIPS
ATHLETES VILLAGE
1.0

0.0
Infrastructure Costs

12

Sources of Funding

G A M E S B U D G E T N U M B E R 6: B I D + G A M E S B U D G E T S 1 D E C E M B E R 2014

3 GAMES BUDGET CONTINUED

Separate from the non-OCOG budget, the Boston

2024 Games will benefit from over $5.2B of
public transportation infrastructure projects that
are currently underway and are guaranteed by
the full faith and credit of the Commonwealth
of Massachusetts. In 2013, the Commonwealth
of Massachusetts authorized a bond bill to fund
the 21st Century Transportation Plan The Way
Forward which authorizes investments of $13.7B in
transportation infrastructure over the next 10 years.
We anticipate that any transportation infrastructure
upgrade projects required for the Games, will fall
under this 21st Century Transportation Plan.

Venue Infrastructure:
Support from the private sector is the foundation
of several key sporting and non-sporting venues.
Boston 2024 has worked closely with the local
authorities, business and academic communities
to establish partnerships that will support the
Boston 2024 Games and provide tremendous legacy
value to their owners and the broader community.
These public-private-partnerships will provide the
platform for the planning and financing of the major
venues including the Athletes Village, Olympic
Stadium, IBC/MPC, as well as a number of key
sporting venues.

1 D E C E M B E R 2014 N U M B E R 6: B I D + G A M E S B U D G E T S G A M E S B U D G E T

13

3 GAMES BUDGET CONTINUED

Athletes Village

IBC / MPC

The Athletes Village will be located on the UMass

Boston campus on Boston Harbor and will be built
in collaboration with UMass and private developers.
UMass has plans to build 6,000 beds of student
housing over the next three years. In partnership with
Boston 2024 and private developers, an additional
10,500 beds will be built for the Games using highquality sustainable and transportable technology.
Following the Games, some of the 10,500 additional
beds will remain as workforce housing while many
will be converted to market rate housing units by
private developers to meet local housing needs in
neighborhoods around the city.
Olympic Stadium
Our team is budgeting for a fully temporary 60,000
seat Olympic Stadium in Boston Midtown. Working
with leading innovators in stadium construction,
Boston 2024 has identified financially responsible
options that will deliver the full Olympic experience.

The IBC/MPC will be located in the South Boston

Waterfront area of Boston on land currently
controlled by the Postal Service and MassPort. This
location is in the heart of a burgeoning business
and residential district and is adjacent to six venues
at the Boston Convention and Exposition Center.
The potential legacy value of this site as a cluster
of media/broadcast facilities for convention use or
as a private commercial enterprise provides strong
partnership opportunities with either the BCEC or
the private sector.
Other Venues
Boston 2024 has identified a number of other
private-public-partnership opportunities to support
infrastructure investments for the Velodrome, BMX
Course, Canoe-Slalom Course, Modern Pentathlon
Stadium and Handball Arena. All other venue costs
will be financed through the OCOG budget

Partnering with the city and private developers,

Olympic Stadium and Olympic Boulevard will act
as a catalyst for a new and vibrant neighborhood
development with retail, hotel, residential and office
space and a much needed injection of commuter
and convention parking. After the completion of
the Games, the temporary stadium will be removed
and replaced on the stadium footprint with a mix of
uses to further support the legacy needs of the City
of Boston.
Working with Bostons leading real estate
developers, Boston 2024 has devised a financial
strategy that captures increased land values
and new tax revenues to finance the cost of
land assemblage and infrastructure upgrades.
This strategy is capable of supporting either
the construction of a fully temporary stadium
as currently planned, or a permanent collegiate
or professional soccer stadium, which could be
expanded temporarily to 60,000.

14

G A M E S B U D G E T N U M B E R 6: B I D + G A M E S B U D G E T S 1 D E C E M B E R 2014

3 GAMES BUDGET CONTINUED

15

3 GAMES BUDGET CONTINUED

OCOG Budget
Boston 2024 anticipates OCOG expenses of $4.7B
for the 2024 Olympic and Paralympic Games. The
OCOG budget was developed by a bottoms-up
assessment of venue-related costs by our team in
close collaboration with the USOC, and guidance
provided by the USOC for the remaining expense
and revenue categories.

$5.0 B

4.0

$4.7 B

$4.7 B

ADDITIONAL REVENUE
TO SUPPORT THE GAMES

OTHER COSTS

OTHER REVENUES

GAMES SERVICES

TECHNOLOGY

DOMESTIC TICKETING

Dollars ($B)

3.0

USOC JV

WORKFORCE
2.0

IOC CONTRIBUTION
SUPPORT SERVICES

1.0
DOMESTIC SPONSORSHIP

VENUE COSTS

0.0
Revenues

Costs

CHART NOTES:

OCOG revenue figures were provided USOC.

Revenues will be received over the period of 2018-2024.
All costs are listed in 2016 dollars.

16

G A M E S B U D G E T N U M B E R 6: B I D + G A M E S B U D G E T S 1 D E C E M B E R 2014

3 GAMES BUDGET CONTINUED

OCOG Revenues
Funding for the 2024 OCOG budget is composed
entirely of marketing, licensing, ticketing and
sponsorship revenues generated by a combination
of the IOC, USOC and Boston 2024 OCOG. Boston
2024 will work closely with the USOC and other
partners as it moves forward in the bid process
to analyze and refine timing and cash flows of
potential revenues sources. The revenues listed are
gross figures corresponding costs are captured
under the cost portion of the OCOG budget.
Domestic Sponsorship Revenues:
Boston is the hub of one of the USs largest regional
economies and offers significant opportunity
for sponsor activation. To establish the optimal
domestic sponsorship program, Boston 2024 will
form a joint venture with the USOC to undertake
sponsorship sales and servicing activities for
the Games. The Boston region represents a new
market for USOC sponsorship sales, and its strong
professional services, healthcare, biopharmaceutical,
technology and education sectors offer new and
significant fundraising opportunities.

Domestic Ticketing:
The USOC has provided estimates of $1.1B in
revenues generated through ticket sales for the
Olympic and Paralympic Games based on
previous Olympics.
Other Revenues:
Boston has an exceptionally strong sports culture
supported by the success of its long established
professional baseball, basketball, hockey and
football teams. In addition, Boston is home to the
worlds oldest and most prominent marathon, the
worlds largest 2-day regatta (Head of the Charles
Regatta), and some of the oldest and strongest
collegiate sports programs in the country. As
a result, Boston 2024 projects marketing and
licensing revenues reflective of a mature
sports market.
The USOC provided estimates of $0.2B in marketing
and licensing revenues from programs such as
commemorative coins/stamps and licensedmerchandise sales. To further support licensing
sales, Boston 2024 will partner with the USOC to
license Team USA marks to merchandisers.

The USOC has provided estimates of $1.6B in

sponsorship revenues across global, national and
local sponsorship opportunities.

LEVEL OF
SPONSORSHIP

# OF SPONSORS

FUNDING ($M )

TIER I

10

900.0

TIER II

195.0

TIER III

20

300.0

TORCH RUN
SPONSORSHIP

200.0

TOTALS

~40 SPONSORS

$1,595.0 M

1 D E C E M B E R 2014 N U M B E R 6: B I D + G A M E S B U D G E T S G A M E S B U D G E T

REVENUE SOURCE

FUNDING ($M )

LICENSING

155.0

COINS / STAMPS

20.0

TOTAL

$175.0 M

17

3 GAMES BUDGET CONTINUED

information systems, installation and tear down and

internet costs.

OCOG Costs
Boston 2024 anticipates OCOG costs of $4.7B for
venue adaptations and overlays, venue operations,
support services, workforce, technology, Games
services and revenue sharing for the USOC
marketing joint venture. OCOG costs use USOC
estimates where provided. All costs are in 2016
dollars. These expenditures are based on estimates
provided by the USOC as well as rigorous bottom
up analysis of the OCOG venue costs that were
developed in close consultation with the USOC and
leading construction, real estate developers and
architecture experts.
Venue Costs:
Boston 2024 has worked to optimize the use of
existing venues and to find legacy partners that
can make use of venues after the completion of the
2024 Games. As a result, 18 of 33 Olympic venues
are existing venues or will remain for legacy use
post-Games, including four existing collegiate
sporting facilities and two professional sporting
venues.
OCOG venue costs include the cost to build 12
temporary venues including the Olympic Stadium
overlay costs for all sporting and non-sporting
venues and venue operation costs, including rent.
Support Services:
The USOC has provided estimates to Boston 2024
on anticipated support service costs in several
categories based on historic costs and adjustments
due to specific U.S. circumstances.
Workforce:
Based on estimates provided by the USOC, Boston
2024 expects workforce costs to be in line with
previous games and projects costs of $0.6B.

Technology:
Boston 2024 expects $0.6B in technology costs
based on USOC estimates from benchmarking of
previous Games and consultation with experts.
Technology costs include cost for hardware,
18

Games Services:
The USOC estimates $0.5B in Games service costs
in several categories based on historic costs and
adjustments due to specific U.S. circumstances.
Other:
Boston expects other OCOG costs to be ~$0.5B
based on USOC estimates. All transportation and
security costs are assumed to be covered by the
United States federal government and have not
been included per guidance from the USOC.
Based on the rigorous analysis conducted and
continued USOC support, Boston 2024 has high
confidence in our ability to achieve the revenues
and manage the cost projections detailed above.
With respect to sponsorship revenues, Boston
2024 is optimistic that working closely with the
USOC it may be able to bring new sponsorship
categories and additional sponsorship dollars to
the Games by leveraging our strong and unique
business community, particularly in new sponsorship
categories such as life sciences, big data/technology,
retail and professional services. Several of the
companies listed below have already invested in
Boston 2024s bid.
In addition, Boston 2024 is optimistic that
additional revenues can be generated through
programs such as the sale of personal naming
rights for new and temporary Olympic venues and
personalized bricks on Olympic walkways and will
work closely with the USOC to identify and execute
new revenue generating programs.
In the area of ticketing, Boston 2024 is working
with some of the most successful and innovative
professional sport franchises to identify and
investigate proven methods that drive additional
revenues. Potential practices include phased sales
periods, auctions, official secondary markets, right
of first refusal and no show upgrades. New ticketing
practices will be carefully coordinated with both the
USOC and IOC to optimize revenues while providing
access to the Games and delivering full stadiums.

G A M E S B U D G E T N U M B E R 6: B I D + G A M E S B U D G E T S 1 D E C E M B E R 2014

3 GAMES BUDGET CONTINUED

Our team is confident we can deliver a Games

budget that is realistic and financially responsible
for our city and community. And, in doing so, we
aspire to pave the way for a new kind of Olympic
budget, with creative and innovative thinking that
will positively impact the USOC, the IOC and host
cities and countries in Olympics to come.

19